Case Law Details
Mahesh Devchand Gala Vs Union of India (Bombay High Court)
In a landmark judgment, the Bombay High Court addressed the critical issue of routine arrests under GST allegations. The case of Mahesh Devchand Gala vs Union of India brought to light the arbitrary detention practices of authorities, prompting the court to grant interim bail to the petitioner.
Background of the Case: The petitioner, Mahesh Devchand Gala, approached the Bombay High Court under Article 226 of the Constitution of India, seeking to quash his arrest by the Inspector of CGST and Central Excise, Mumbai (West Commissionerate). The arrest stemmed from an old GST-related case dating back to 2021, involving Om Sai Nityanand Management Pvt. Ltd. The company had complied with the authorities by paying Rs. 23.61 lakh in cash and securing Rs. 2.93 crores through the blocking of Input Tax Credit (ITC). Despite this, Gala was detained and subsequently arrested in 2024.
Arguments Presented:
For the Petitioner: Mr. Ponda, the learned senior counsel for the petitioner, highlighted the arbitrary nature of the arrest. He argued that the GST returns and audit reports from 2017 to 2020 were already available to the authorities, negating the need for detaining Gala overnight. He pointed out inconsistencies in the respondent’s timeline and emphasized the unjustified delay in producing the petitioner before a magistrate. The counsel cited the Supreme Court’s ruling in Arnab Manoranjan Goswami vs State of Maharashtra, underscoring the misuse of state power in arrests without substantial grounds.
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